Stocks continued to drift lower Monday, with all three of the
major market indices finishing with moderate declines as investors
parced comments by several Federal Reserve officials for fresh
signs of when the central bank will scale back its bond-buying
stimulus program. Shares of financial companies posted the steepest
fall among the 10 sectors in the S&P 500 while Tech stocks
finished the session in the black as a group, lifted by 5% advance
for Apple Inc. (
) after the sector heavyweight said it sold about 9 million of its
new iPhone models this weekend.
Remarks this morning by Fed Presidents Bill Dudley and Dennis
Lockhart sought to calm fears of an October taper suggested by St
Louis Fed President James Bullard last week. Investors remain on
the fence, however, fearful data later this week could provide the
ammunition supporting a reduction in the central bank's bond-buying
Dallas Fed President Richard Fisher also spoke today, saying he
disagreed with the decision to not taper asset purchases, believing
it is undermining the Fed's reliability and increasing market
uncertainty. Fisher is non-voting member of the Federal Open
Markets Committee this year.
Today's economic reports did little to inspire the financial
markets. The Markit Purchasing Managers Index for September
declined slightly from August to a 52.8 reading, trailing consensus
estimates for a small improvement to 54.0. But the Chicago Fed
national activity index showed dramatic improvement in August to a
0.14 reading from a negative 0.15 score during the prior month.
November crude oil fell $1.28 to $103.58 per barrel while
October natural gas slid 9 cents to $3.60 per 1 million BTU.
December gold fell $5.30 to $1327.30 per ounce while December
silver fell 4 cents to $21.87 per ounce. December copper was down 2
cents to settle at $3.30 per pound.
Here's where the markets stood at end-of-day:
Dow Jones Industrial Average down 49.71 (-0.32%) to
S&P 500 down 8.07 (-0.47%) to 1,701.84
Nasdaq Composite Index down 9.44 (-0.25%) to 3,765.29
Hang Seng Index down 0.56%
Shanghai China Composite Index up 1.33%
FTSE 100 Index down 0.59%
(+) CRME, Publishes positive data from open-label study
comparing its vernakalant intravenous treatment to oral doses of
propafenone or flecainide in patients with atrial fibrillation.
(+) AAPL, The new iPhone 5S was met with very strong demand,
with about 9 million units sold - a 50% bulge over most market
(+) BBRY, Agrees to $9-a-share buyout offer from a consortium
led by its biggest shareholder, Fairfax Financial Holdings Ltd
(FFH.TO). Overall value of the deal is $4.7 billion.
(-) C, Financial Times reports the bank's trading revenue fell
sharply compared to year-ago levels due to a mid-summer
(-) P, Shares of the internet radio service respond negatively
to expected competition from Apple's (
) iTunes Radio included in the new iOS 7 software update.
(-) FISH, Pipeline company slides to new 52-week low after
expanding its board to now encompass a majority of independent
directors. Also announced pro-rated Q3 cash distribution to
unitholders of $0.23 per unit.
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